Valuation Metrics Indicate Attractive Pricing
At a price of ₹51.99, Sonal Adhesives trades with a price-to-earnings (PE) ratio of approximately 22.35, which is notably lower than many of its industry peers. The price-to-book value stands at 3.26, reflecting moderate market confidence in the company’s asset base. More importantly, the enterprise value to EBITDA ratio of 15.48 suggests that the stock is reasonably priced relative to its earnings before interest, taxes, depreciation, and amortisation.
Return on capital employed (ROCE) at 8.24% and return on equity (ROE) at 14.57% demonstrate efficient utilisation of capital and shareholder funds, respectively. While these returns are not exceptionally high, they are consistent with a stable commodity chemicals company ope...
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